Ferro Corp. recently announced restructuring actions to
reduce costs related to the company’s European dielectrics manufacturing after
finalizing the consultation process with workers' representatives. This action
is the latest restructuring step in a group of projects that were initiated
subsequent to Ferro's equity offering in November 2009.
As a result of this action, dielectric products that are
currently manufactured in Uden, the Netherlands, will be transferred to
other Ferro locations or discontinued, and the manufacturing site will be
closed. In total, approximately 120 positions are expected to be eliminated as
a result of the restructuring. The actions are expected to be completed by the
end of 2010.
“We continue to take actions to optimize our cost structure
and to focus our resources on growing, high-margin opportunities,” said Mike
Murry, vice president of Electronic, Color and Glass Materials.
The company expects to record net charges of approximately
$13 million during 2010 related to the costs of this restructuring action. The
charges include approximately $9 million in severance charges and approximately
$3 million in site cleanup and shutdown costs. Possible non-cash impairments of
the property and equipment related to this restructuring action have not yet
been determined. The initiatives are expected to generate pre-tax cost and
expense savings of approximately $6 million on an annual basis.
Additional details are available at
www.ferro.com.
